U.S. Stocks Seeing Modest Strength Ahead Of Fed Announcement

(RTTNews) - Stocks are seeing modest strength during trading on Wednesday, regaining ground following the weakness seen in the previous session.

Currently, the major averages are just off their highs of the session. The Dow is up 190.81 points or 0.4 percent at 43,640.71, the Nasdaq is up 60.24 points or 0.3 percent at 20,169.30 and the S&P 500 is up 16.32 points or 0.3 percent at 6,066.93.

The rebound on Wall Street comes as some traders look to pick up stocks at somewhat reduced levels following yesterday's weakness, which saw the Dow close lower for the ninth consecutive session.

The blue chip index matched its longest losing streak since 1978, slumping to its lowest closing level in almost a month.

Buying interest remains somewhat subdued, however, as traders look ahead to the Federal Reserve's monetary policy announcement this afternoon.

The Fed is widely expected to continue lowering interest rates, with CME Group's FedWatch Tool currently indicating a 98.6 percent chance of another quarter point rate cut.

Traders are subsequently likely to pay closer attention to the accompanying statement as well as officials' latest economic projections, including their forecasts for rates.

Recent data showing inflation remains sticky has led to some worries the Fed will lower rates slower than previously anticipated next year.

Sector News

Networking stocks have moved back to the upside following the pullback seen on Tuesday, with the NYSE Arca Networking Index climbing by 1.5 percent. The index reached a new record intraday high in early trading but has given back ground since then.

Notable strength is also visible among semiconductor stocks, as reflected by the 1.2 percent gain being posted by the Philadelphia Semiconductor Index.

Airline stocks are also turning in a strong performance on the day, driving the NYSE Arca Airline Index up by 1.2 percent, while gold stocks are seeing some weakness amid a decrease by the price of the precious metal.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan's Nikkei 225 Index slumped by 0.7 percent, while China's Shanghai Composite Index climbed by 0.6 percent.

Meanwhile, European stocks are seeing modest strength on the day. While the French CAC 40 Index is up by 0.4 percent, the German DAX Index is up by 0.2 percent and the U.K.'s FTSE 100 Index is up by 0.1 percent.

In the bond market, treasuries have moved slightly lower ahead of the Fed announcement. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.2 basis points at 4.397 percent.